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Starting 1March 2017 Polish fiscal administration operates as National Fiscal Administration and new rules have been introduced for tax audits. Here are the most important ones for taxpayers whose tax audit covers transfer pricing:

1.    tax audit launched without prior notification of an intended inspection, and

2.    possibility to request documents relating to periods other than audited.

Re. 1. Before 1March 2017, tax authorities were obliged to notify a taxpayer of an intended audit/inspection. The taxpayer was notified between 7 to 30 days before the intended inspection starting date. Only after this period, tax authorities filed a decision with the taxpayer to launch audit proceedings. The taxpayer’s consent was mandatory if tax authorities wanted to initiate an audit earlier. Thus, the taxpayer had time to prepare for the audit and, for example, prepare appropriate documents. According to Polish regulations, taxpayers have a 7-day deadline for submitting transfer pricing documentation to the tax authorities starting from the request reception date. Therefore, taxpayers had additional time to prepare the documentation in the period of time from the audit notification date to the its launching date.  

Currently, customs and fiscal audit is launched once the taxpayer is served with the audit authorisation from the tax authority. Tax authority can set a deadline to submit the transfer pricing documentation at the very same day.

Consequently, taxpayers have no additional time to prepare documents for a tax audit. Additionally, preparing an accurate and complete documentation within 7 days is impossible in practice. So, with the new audit rules in place, taxpayers must be ready for potential tax audit and prepare the transfer pricing documentation in advance.

Re. 2. According to the new regulations, tax authorities can request files, books and other documents linked to the subject matter of the tax audit, also related to periods of time not subject to the audit, unless the limitation period for tax liability has expired. Tax authorities may thus require the taxpayer to provide the transfer pricing documentation not only for the year covered by the tax audit, but also for other years if they state that these documents are related to the subject of tax audit. Taxpayers should be ready for a possible tax audit and prepare in advance transfer pricing documentation for all years that might be covered by a tax audit.

Furthermore, with extended duties from 1January 2017 in the field of transfer pricing documentation taxpayers must spend much more time and commitment. Therefore, we recommend fulfilling the documentation obligations for 2011-2016 as soon as possible to leisurely prepare the complete transfer pricing documentation for 2017.



Should you be interested in obtaining further information or would like to discuss the impact of the above changes on your operations please contact:

Alicja Sarna tel. + 48 22 322 68 88,

Magdalena Marciniak tel. + 48 22 322 68 84


or your tax advisor from MDDP.

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